Invesco Perpetual’s equity income manager Neil Woodford is set to leave the company in April next year.
The UK’s biggest fund manager has announced he is setting up a new company.
Fund brokers and ratings agencies are scrambling to suspend their longstanding positive ratings on the managers funds in the wake of the announcement.
The news represents a major blow for Henley-based Invesco Perpetual, as Mr Woodford runs an estimated £33bn across Invesco Perpetual funds, St James’s Place mandates and the Edinburgh Investment Trust.
The manager of the group’s giant UK equity income funds will leave in April next year and hand his funds to Mark Barnett.
Ciaran Mallon will run the equity component of the group’s Monthly Income Plus and Distribution funds alongside the existing fixed income managers Paul Causer and Paul Read.
Mr Woodford said his decision to leave was a personal one “based on my views about where I see long term opportunities in the fund management industry”.
“My intention is to establish a new fund management business serving institutional and retail clients as soon as possible after April 29 2014,” he said.
“There will be no further comment at this stage. Further announcements about the new business will be made after I have left.”
Mark Armour, chief executive of Invesco Perpetual, said Mr Woodford was ready for “new challenges”.
He added: “We have planned for succession for many years and have built a world-class investment culture that develops and supports gifted and experienced managers.
“Mark Barnett is an exceptional fund manager who has the same active, value-driven investment approach and long-term focus as Neil. A key member of the UK Equities team for 17 years, Mark has a first-quartile track record over one, three and five years.
“We are confident that Mark, Ciaran and the UK equities team will continue to do an excellent job for clients.”
Investment Adviser interviewed Mr Barnett last year on how he feels about being tipped as Mr Woodford’s natural successor.
